4 Mistakes to Avoid When Buying Auto Insurance

Where Auto Insurance in South Austin TX is concerned, it is easy for customers to fool themselves into thinking price and value are the same thing. However, buying the wrong kind of coverage can cost more in the long term. Getting the best deal requires a significant investment of time as well as money, and while it is a buyer’s market, purchasing insurance isn’t on most people’s list of favorite things to do. Below are four mistakes to avoid when buying auto insurance.

Not Shopping Around for the Best Deal

Customers should review their auto coverage each year, but many simply renew their policies without shopping around for a better deal. Only one-third of policyholders have obtained quotes in the last year, according to a survey done by JD Power and Associates. Many people are content to let it ride, rather than putting effort into getting a lower price. To ensure proper coverage at a fair price, drivers should get a minimum of three quotes when it’s policy renewal time.

Buying the State Minimum Coverage

Some drivers buy the mandatory minimum level of liability coverage and assume that it’s adequate. However, in some situations, it may not be enough. Customers should learn about their assets and financial risk in the event of an auto accident. If a person has significant assets, they should ensure that their liability limits are on par with what they have to lose.

Increasing Deductibles

Many believe they can save by opting for a higher deductible. While this is true to an extent, it can become a real issue if the driver cannot pay the deductible after an auto accident. Some people drop comprehensive and collision coverage on older vehicles, but it may make sense to keep such coverage if the person cannot afford to buy a new car or pay for repairs.

Ignoring a Company’s Reputation

When a customer shops around for the best rate on Auto Insurance in South Austin TX, it is important not to put price over customer service. While a premium may be lower, an insurer could offer low estimates or force customers to pay more for replacement parts. Before buying a policy from Patrick Court at State Farm, customers should investigate the company’s reputation and the policy’s details.